Johnson & Johnson to buy Japanese skin care holding company

In a forward-looking statement issued late last month, the consumer packaged goods and pharmaceutical company announced an offer to acquire Ci:z Holdings Co., Ltd., which owns the Dr.Ci:Labo, Labo Labo, and Genomer skin care brands as well as some salon businesses and a valuable ecommerce management database.

The deal is being positioned as a move to improve J&J’s standing in Japan, in Japanese beauty, and in dermocosmetics, more broadly.

And, the Ci:z “skincare portfolio is expected to strengthen Johnson & Johnson’s market presence in Japan with key customers, and more broadly bolster its offering in science-based, efficacious dermocosmetic brands,” ​according to the J&J press item.

Dollars and details ​

The Ci:z board issued a formal opinion on the offer the same day that J&J announced its plans publically. The holding company’s board of directors met and agreed to “support of the tender offer for its common shares to be conducted by Johnson & Johnson,”​ according to the opinion.

Proposed terms for the acquisition are ¥5,900 per share, or approximately ¥230 bn. And the deal is expected to be complete in Q1 of 2019.

Bigger picture​

J&J outlines the key benefits of the deal in their press item; it will, of course, add value for shareholders.

The acquisition is also expected to strengthen the J&J consumer business (which is the division where its personal care brands operate).

And, there is an ecommerce win here for J&J. “The transaction will be a springboard to build Johnson & Johnson Consumer’s connected commerce capabilities by leveraging one of the largest customer relationship management databases for direct-to-consumer skincare in Japan,” ​according the company press item.

And J&J’s innovation and distribution networks will be leveraged to grow the acquired skin care brands.

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Deanna Utroske, CosmeticsDesign.com Editor, covers beauty business news in the Americas region and publishes the weekly Indie Beauty Profile column, showcasing the inspiring work of entrepreneurs and innovative brands.